IMG_1594

The findings and the recommendations of the PAC were delivered on 10 April, 2015, during a press conference that was held at the Pigs Tusk, Parliament House.

Findings and Resolutions of the Hearing conducted on the 1st to the 9th of April 2015

  1. Institutions do not comply with the Public Finance and Economic Management (PFEM) ACT, (17) 1.
  2. Authorities supervising the institutions do not know about the PFEM ACT and own ACTs.
  3. Many of these institutions manage to pay their salaries and benefits however failed to pay the government dividends.
  4. Board members do not know how to administer their institutions.
  5. There is no accountant hired in some of these institutions, and they have not recruited professional accountants to do professional duties.
  6. The Heads of Institutions do not worry about breaking the law.
  7. Money allocated and collected are State Money/ Public Fund – Part 10, subsection 43 (1).
  8. The Public Accounts Committee used the Police on several cases to summon people, however did not prosecute anyone.

Recommendations

PAC to ask the Prime Minister and the government to:

  1. Relook at the government state owned enterprises – if not paying any dividends then government must reconsider decisions.
  2. Public Service to enforce the law of the Public Service: a) When recruiting b) When they (Public Servants) do not do their jobs.
  3. Ask the Public Service to enforce cap 246 (section 33 on allowances) – fees for official services when Director Generals and Directors are sitting as board members and receiving allowances.
  4. VNPF – re-establish its subsidy companies (Limited Companies): Members Financial Services Limited (MFSL), Ranch de Bouffa Ltd, VNBR with regards to their reporting requirements.
  5. Government Remuneration Tribunal – check all salary scale across the board.
  6. NISCOL – restructure before extending the concessional agreement.
  7. Amend the Expenditure Review and Audit Act to enable the PAC and AG to punish to noncompliance to PFEM Act.
  8. Ask VNPF to stop investing for the time being.
  9. Ask the government to establish the Public Accounts Office – budget of VT5, 000,000.
  10. Increase PAC budget: VT3, 000, 000 x 3 Hearings/year = VT 9, 000, 000.

The List of Government Statutory Bodies (GSB) and the years that they have not submitted their reports including the re-scheduled deadline for submissions:

# Government Statutory Body Financial Statements & Audit Reports Deadline

2015

1 Vanuatu National Provident Fund 2013 June
2 Vanuatu National Provident Fund 2014 June
3 Member Financial Services Limited 2013 June
4 Member Financial Services Limited 2014 June
5 Bouffa Ranch Limited 2013 – 2014 June
6 Asset Management Unit 2007 – 2014 June
7 Vanuatu Tourism Office 2011 – 2014 June
8 Vanuatu Broadcasting & Television Corporation 2008 – 2009 / 2013 June
9 Vanuatu National Housing Corporation 1998 – 2014 June
10 Vanuatu Financial Services Commission 2010 – 2014 June
11 Chamber of Commerce & Industries 2013 – 2014 June
12 Vanuatu Institute of Technology 2004 – 2014 June
13 Vanuatu National Training Council 2005 – 2012 June
14 Vanuatu National Training Council 2013 – 2014 June
15 Vanuatu National Cultural Council 2010 – 2014 June
16 Vanuatu National Sports Council 2005 – 2014 June
17 Airports Vanuatu Limited 2012 – 2014 June
18 Vanuatu Livestock Department 2004 – 2013 June
19 Vanuatu Commodities Marketing Board 2001 – 2014 June
20 Vanuatu Institute of Education 2004 – 2014 June
21 Vanuatu Nursing Council 2004 – 2014 June
22 Malvatumauri Council of Chiefs 2005 – 2014 June
23 Terminal Services Limited 2012 – 2014 June
24 NISCOL 2007 – 2014 June
25 Provincial Kava Authority 2013 – 2014 June
Provincial Councils & Municipalities Financial & Audit Reports Deadline
26 Port Vila Municipality 2005 – 2014 June
27 Luganville Municipality 2005 – 2014 June
28 Lenakel Municipal Council 2009 – 2014 June
29 SANMA Provincial Council 2005 – 2014 June
30 PENAMA Provencal Council 2005 – 2014 June
31 TORBA provincial Council 2005 – 2014 June
32 SHEFA Provincial Council 2005 – 2014 June
33 MALAMPA Provincial Council 2005 – 2014 June
34 TAFEA Provincial Council 2005 – 2014 June

 

Government Statutory Body/Bodies…

…That lack qualified professional accountants:

  1. Vanuatu National Housing Corporation
  2. Vanuatu National Training Council
  3. Vanuatu National Cultural Council
  4. Malvatumauri Council of Chiefs
  5. Vanuatu Nursing Council
  6. Vanuatu Broadcasting & Television Corporation
  7. Vanuatu Institute of Technology
  8. Vanuatu National Sports Council
  9. Airports Vanuatu Limited
  10. Air Vanuatu Operations Ltd
  11. Vanuatu Livestock Development Ltd
  12. Vanuatu Commodities Marketing Board
  13. Municipality of Port Vila
  14. Municipality of Lenakel
  15. Vanuatu Institute of Education
  16. Provincial Kava Authority
  17. VNBR – Just established

 …That have qualified professional accountants:

  1. Vanuatu National Provident Fund
  2. Members Financial Services Limited
  3. Ranch de la Bouffa Limited
  4. Asset Management Unit
  5. Vanuatu Tourism Office
  6. Vanuatu Financial Services Commission
  7. Vanuatu Chamber of Commerce
  8. Terminal Services Limited
  9. NISCOL
  10. Municipality of Luganville
  11. SANMA Provincial Council
  12. PENAMA Provincial Council
  13. MALAMPA Provincial Council
  14. SHEFA Provincial Council
  15. TAFEA Provincial Council
  16. Utilities Regulatory Authority
  17. TORBA Provincial Council

With no “qualified CEO” or “no proper administration” giving reason for non-compliance to PFEM Act/own Act/ Companies Act:

  1. Airports Vanuatu Limited
  2. NISCOL

Who have “no knowledge of the PFEM Act” or are not aware of the PFEM Act:

  1. Air Vanuatu Operations Ltd
  2. Vanuatu Institute of Education
  3. Vanuatu National Provident Fund
  4. Members Financial Services Limited
  5. Vanuatu National Housing Corporation
  6. Vanuatu National Sports Council
  7. Airports Vanuatu Limited
  8. Terminal Services Limited
  9. Provincial Kava Authority
  10. Vanuatu Livestock Development Ltd
  11. Vanuatu Commodities Marketing Board
  12. NISCOL
  13. Municipality of Luganville
  14. Municipality of Port Vila
  15. Municipality of Lenakel
  16. SANMA Provincial Council
  17. MALAMPA Provincial Council
  18. SHEFA Provincial Council
  19. TAFEA Provincial Council
  20. VNBR

 …Listed for liquidation on approval by COM or de-registered:

  1. Asset Management Unit
  2. Provincial Kava Authority – De-registered in 2006.

…Who have faced “problems due to preparation of financial statements by another accounting firm”, or who have had a “change of auditors therefore difficulty encountered”:

  1. Vanuatu Broadcasting & Television Corporation
  2. Vanuatu Tourism Office

A declaration of 0% was made by the board which resulted in the delay of the provisions of the financial statement on time to the Auditor General:

  1. Vanuatu National Provident Fund
  2. Members Financial Services Limited
  3. Ranch de la Bouffa Limited

 …That reported to their Parent Company instead of to the Auditor General:

  1. Terminal Services Limited
  2. Members Financial Services Limited
  3. Ranch de la Bouffa Limited

 …That reported to the Department of Local Authority instead of to the Auditor General:

  1. Municipality of Luganville
  2. Municipality of Port Vila
  3. Municipality of Lenakel
  4. SANMA Provincial Council
  5. PENAMA Provincial Council
  6. MALAMPA Provincial Council
  7. SHEFA Provincial Council
  8. TORBA Provincial Council
  9. TAFEA Provincial Council

That are aware of Company Act (Financial Reporting):

  1. Asset Management Unit
  2. Vanuatu Tourism Office
  3. Vanuatu Broadcasting & Television Corporation
  4. Vanuatu Financial Services Commission
  5. Vanuatu Chamber of Commerce
  6. Ranch de la Bouffa Limited
  7. TORBA Provincial Council
  8. Utilities Regulatory Authority
  9. Vanuatu National Provident Fund
  10. Members Financial Services Limited

 71% are not fully aware of own Act

IMG_1537 (2)

…That are not aware of Company Act (Financial Reporting):

  1. Vanuatu National Housing Corporation
  2. Vanuatu Institute of Technology
  3. Vanuatu National Training Council
  4. Vanuatu National Cultural Council
  5. Vanuatu National Sports Council
  6. Airports Vanuatu Limited
  7. Terminal Services Limited
  8. Air Vanuatu Operations Limited
  9. Provincial Kava Authority – deregistered in 2006
  10. Vanuatu Livestock Development Ltd
  11. Vanuatu Commodities Marketing Board
  12. NISCOL
  13. Municipality of Luganville
  14. Municipality of Port Vila
  15. Municipality of Lenakel
  16. SANMA Provincial Council
  17. MALAMPA Provincial Council
  18. SHEFA Provincial Council
  19. TAFEA Provincial Council
  20. PENAMA Provincial Council
  21.  Vanuatu Nursing Council
  22.  VNBR
  23.  Vanuatu Institute of Education

82% not aware of Expenditure Review & Audit Act

Airports Vanuatu limited responds to the PAC questions,

Airports Vanuatu limited responds to the PAC questions, “”Why haven’t you submitted your financial audited reports?” the PAC questions Airports Vanuatu limited”

 …That are aware of the Expenditure Review & Audit Act:

  1. Asset Management Unit
  2. Vanuatu Tourism Office
  3. Vanuatu Broadcasting & Television Corporation
  4. Vanuatu Financial Services Commission
  5. Vanuatu Chamber of Commerce
  6. Utilities Regulatory Authority

…That are not aware of the Expenditure Review & Audit Act:

  1. Vanuatu National Provident Fund
  2. Members Financial Services Limited
  3. Ranch de la Bouffa Limited
  4. Vanuatu National Housing Corporation
  5. Vanuatu National Training Council
  6. Vanuatu Institute of Technology
  7. Vanuatu National Cultural Council
  8. Vanuatu National Sports Council
  9. Airports Vanuatu Limited
  10. Terminal Services Limited
  11. Air Vanuatu Operations Limited
  12. Provincial Kava Authority Ltd
  13. Vanuatu Livestock Development Ltd
  14. Vanuatu Commodities Marketing Board
  15. NISCOL
  16. Municipality of Luganville
  17. Municipality of Port Vila
  18. Municipality of Lenakel
  19. SANMA Provincial Council
  20. PENAMA Provincial Council
  21. MALAMPA Provincial Council
  22. SHEFA Provincial Council
  23. TORBA Provincial Council
  24. TAFEA Provincial Council
  25. Malvatumauri Council of Chiefs
  26. Vanuatu Nursing Council
  27. Vanuatu Institute of Education
  28. VNBR

To view a detailed report of the findings, resolutions and recommendations revealed by the PAC please click on the link below:

Other related online materials:

  1. The role of the Public Accounts Committee:

https://parliament.gov.vu/index.php/wcs/committee-public-accounts

  1. tivnews, 2015, “PAC tightens grip over government statutory bodies”, Public Accounts Hearing, https://tivnews.wordpress.com/2015/04/02/pac-tightens-grip-on-government-statutory-bodies-over-financial-audited-reports/
  1. tivnews, 2015, “You Have Failed: PAC”, Public Accounts Hearing, https://tivnews.wordpress.com/2015/04/10/you-have-failed-pac/
  1. The Daily Post, 2015, “Auditor General’s Office Under Resourced: AG Path”, http://www.dailypost.vu/news/article_95153747-33e7-5a4d-9ee7-3464457c7dcf.html
  1. The Daily Post, 2015, “Whole of government report not true worth of government: AG Path”, http://www.dailypost.vu/news/article_c1fbf8af-271c-59ce-bc2f-088dffd61c38.html

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